False Claims Act and Whistleblower News

The False Claims Act enables a private citizen with unique knowledge of fraud committed against the federal government (such as health care fraud, contract fraud, and tax fraud) to file a lawsuit under seal (not accessible to the public) seeking treble (triple the amount) damages on behalf of the government...
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recent posts - false claims act (FCA)

October 23, 2013
The owners of Global Medical Direct, LLC and Global Medical Inc., have agreed to pay $7 million to resolve allegations against them in connection with a scheme to submit false claims to the federal Medicare and Tricare healthcare programs, the United States Attorney’s Office announced yesterday. Global Medical, Inc. and its parent company, Global Medical Direct, LLC, are mail-order diabetic supply companies.  The United States alleged that owners Robert Shea and Mark Franz caused... full text
October 22, 2013
Kmart Corporation has agreed to pay the United States and 32 participating states a total of $2.5 million to settle allegations of false prescription claims by its national pharmacy centers to government health insurance programs, the Federal Bureau of Investigation announced yesterday. Kmart allegedly violated the False Claims Act by billing government health care programs (Medicaid, Tricare and the Federal Employee Health Benefits Program) for all drugs included in a prescription when, for... full text
October 18, 2013
Boston Scientific Corp. and its subsidiaries, Guidant LLC, Guidant Sales LLC and Cardiac Pacemakers Inc. (Guidant), have agreed to pay $30 million to settle allegations that Guidant knowingly submitted or caused the submission of false claims to the Medicare federal health program, the Justice Department announced yesterday. The government alleged that Guidant knowingly sold defective heart defibrillators to health care facilities that in turn implanted the devices into Medicare patients.... full text
October 11, 2013
The lawsuit against Citizens Medical Center (Citizens), filed by Drs. Dakshesh Parikh, Harish Chandna, and Ajay Gaala, is moving forward after a federal judge denied the defendant’s motion to dismiss the case.  The doctors allege that Citizens violated the False Claims Act by knowingly submitting or causing the submission of false claims to federal health care programs (Medicare and Medicaid). Citizens allegedly entered into improper financial relationships with and gave kickbacks to... full text
October 8, 2013
The U.S. Attorney’s Office has intervened in a lawsuit against Pinnacle Bank (Pinnacle) in the U.S. District Court for the District of Wyoming, the U.S. Department of Justice announced last month.  The complaint alleges that Pinnacle made false statements to the United States Small Business Administration (SBA) regarding a loan under the SBA’s “504 Loan Program.” Pinnacle Bank provided the Columbine Group, LLC, (developer of the hotel) with an interim construction... full text
October 2, 2013
A federal judge has ordered South Carolina-based Tuomey Healthcare System to pay $227 million for violations of the False Claims Act and the Stark Law.  Tuomey Healthcare System was accused of signing 19 doctors to lucrative part-time contracts that paid well above fair market value in order to continue to receive the referral fees associated with those doctors’ procedures.  Paying doctors out of their referral fees constitutes an illegal kickback under Medicare law, and the U.S... full text
September 27, 2013
A federal judge in San Francisco has denied motions for partial summary judgment made by both McKesson Corporation and the Commonwealth of Virginia.  The case, involving violations of  the Virginia Fraud Against the Taxpayers Act  (VFATA), Virginia’s state equivalent of the federal False Claims Act, will proceed to trial.  Virginia alleges that McKesson violated the VFATA when it conspired with First DataBank, Inc. (FDB) to extract overpayments from Virginia’s... full text
September 25, 2013
California-based Kan-Di-Ki, doing business as Diagnostic Laboratories and Radiology (Diagnostic Labs) has agreed to pay $17.5 million to resolve allegations that the company violated both the federal and California False Claims Acts, the U.S. Department of Justice announced today.  Kan-Di-Ki allegedly paid kickbacks for the referral of mobile lab and radiology services that were subsequently billed to Medicare and Medi-Cal. The government alleged that Diagnostic Labs took advantage of... full text
September 19, 2013
Several Florida-based radiation oncology providers have agreed to pay $3.5 million to the U.S. government and the State of Florida to resolve allegations that they knowingly submitted or caused the submission of false claims to federal health care programs, the U.S. Department of Justice announced last week.  The defendants include Gulf Region Radiation Oncology Centers Inc. (GRROC), Gulf Region Radiation Oncology MSO LLC, Sacred Heart Health System Inc., West Florida Medical Center Clinic... full text
September 17, 2013
Conax Florida Corp. and related companies have agreed to settle allegations that Conax knowingly submitted or caused the submission of false claims to the U.S. government in connection with improperly tested and non-conforming equipment, the U.S. Department of Justice announced last month. Conax Florida Corp. designed and manufactured inertia reels and voltage references used by the U.S. military and NASA.  Inertia reels are part of a system designed to secure aircrew members in the event... full text